Correlation Between Wintao Communications and Chongqing Brewery
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By analyzing existing cross correlation between Wintao Communications Co and Chongqing Brewery Co, you can compare the effects of market volatilities on Wintao Communications and Chongqing Brewery and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wintao Communications with a short position of Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Chongqing Brewery.
Diversification Opportunities for Wintao Communications and Chongqing Brewery
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and Chongqing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery and Wintao Communications is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wintao Communications Co are associated (or correlated) with Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Wintao Communications i.e., Wintao Communications and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Wintao Communications and Chongqing Brewery
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.7 times more return on investment than Chongqing Brewery. However, Wintao Communications is 1.7 times more volatile than Chongqing Brewery Co. It trades about 0.21 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.31 per unit of risk. If you would invest 2,003 in Wintao Communications Co on November 6, 2024 and sell it today you would earn a total of 190.00 from holding Wintao Communications Co or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Chongqing Brewery Co
Performance |
| Timeline |
| Wintao Communications |
| Chongqing Brewery |
Wintao Communications and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Chongqing Brewery
The main advantage of trading using opposite Wintao Communications and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Chongqing Brewery can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Wintao Communications vs. Zhejiang Yongjin Metal | Wintao Communications vs. Dymatic Chemicals | Wintao Communications vs. Miracll Chemicals Co | Wintao Communications vs. Porton Fine Chemicals |
| Chongqing Brewery vs. Heren Health Co | Chongqing Brewery vs. Konfoong Materials International | Chongqing Brewery vs. Advanced Technology Materials | Chongqing Brewery vs. Shenzhen Cotran New |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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